Correlation Between Dynamic Group and Argo Investments

Can any of the company-specific risk be diversified away by investing in both Dynamic Group and Argo Investments at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dynamic Group and Argo Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dynamic Group Holdings and Argo Investments, you can compare the effects of market volatilities on Dynamic Group and Argo Investments and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dynamic Group with a short position of Argo Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Group and Argo Investments.

Diversification Opportunities for Dynamic Group and Argo Investments

0.19

Correlation Coefficient

Dynamic Group  Argo Investments

Average diversification

The 3 months correlation between Dynamic and Argo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Group Holdings and Argo Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Investments and Dynamic Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dynamic Group Holdings are associated (or correlated) with Argo Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Investments has no effect on the direction of Dynamic Group i.e., Dynamic Group and Argo Investments go up and down completely randomly.

Pair Corralation between Dynamic Group and Argo Investments

Assuming the 90 days trading horizon Dynamic Group is expected to generate 17.36 times less return on investment than Argo Investments. In addition to that, Dynamic Group is 2.2 times more volatile than Argo Investments. It trades about 0.01 of its total potential returns per unit of risk. Argo Investments is currently generating about 0.2 per unit of volatility. If you would invest  865.00  in Argo Investments on April 23, 2025 and sell it today you would earn a total of  55.00  from holding Argo Investments or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Dynamic Group Holdings  vs.  Argo Investments

Dynamic Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dynamic Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Dynamic Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Argo Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Investments are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Argo Investments may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Dynamic Group and Argo Investments

The main advantage of trading using opposite Dynamic Group and Argo Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Group position performs unexpectedly, Argo Investments can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Argo Investments will offset losses from the drop in Argo Investments' long position.

The idea behind Dynamic Group Holdings and Argo Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.